Adobe

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: ADBE terminated its intent to acquire Figma, citing that there is no clear path to receive regulatory approval from the European Commission and the U.K. Competition and Markets Authority (CMA). We’re by no means surprised by the decision as we thought the regulatory hurdles across the globe were too steep to overcome; we note that the termination includes a $1B fee that ADBE will pay. Still, this provides clarity on the subject matter with the deal being stuck in limbo for the last 15 months (valued at $20B half cash/stock). Despite hopes that the M&A landscape could be improving, with completed mega deals of Microsoft/Activision and Broadcom/VMware, we think regulators continue to scrutinize Tech deals, especially as we progress into a more AI-driven environment. Europe and the […]

Shares of Adobe Inc. (ADBE) climbed 1.9% in premarket trading Monday after the software company and design tools maker Figma said they have agreed to terminate the $20 billion merger agreement. Adobe said the companies agreed that “there is no clear path” to receive the necessary regulatory approvals from the European Commission and the U.K. Competition and Markets Authority. CMA said last month that it saw a “substantial lessening of competition” from the deal, which was originally announced in September 2022. “Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” said Adobe Chief Executive Shantanu Narayen. Adobe’s stock has soared 73.7% year to date through Friday, while the S&P 500 has gained 22.9%.

Adobe is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. The maker of Photoshop and other software gave downbeat revenue guidance late Wednesday, even as it reported fourth-quarter revenue and adjusted earnings of $5.05 billion and $4.27 a share, respectively, topping analysts’ expectations. For next year’s fiscal first quarter, Adobe is expecting revenue of between $5.1 billion and $5.15 billion, below consensus calling for $5.16 billion.

Adobe (NASDAQ:ADBE) Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 12/14/2023 4.17% Stifel $600 → $625 Maintains Buy 12/12/2023 12.5% Citigroup $610 → $675 Maintains Neutral 12/08/2023 15% BMO Capital $670 → $690 Maintains Outperform 12/04/2023 21.67% KGI Securities → $730 Upgrades Neutral → Outperform 11/10/2023 11.67% BMO Capital $645 → $670 Maintains Outperform 11/09/2023 8.33% Piper Sandler → $650 Reiterates Overweight → Overweight 10/26/2023 10% Oppenheimer → $660 Upgrades Perform → Outperform 10/26/2023 6.67% DA Davidson $500 → $640 Upgrades Neutral → Buy 10/11/2023 0% Stifel → $600 Reiterates Buy → Buy 10/11/2023 2.5% RBC Capital → $615 Reiterates Outperform → Outperform 10/11/2023 8.33% Piper Sandler → $650 Reiterates Overweight → Overweight 09/29/2023 -13.5% HSBC → $519 Initiates Coverage On → Hold 09/15/2023 1.67% Deutsche Bank $550 → $610 Maintains Buy 09/15/2023 6.67% Barclays $620 → $640 Maintains Equal-Weight 09/15/2023 8.33% Wolfe

The following is a summary of the Adobe Inc. (ADBE) Q4 2023 Earnings Call Transcript: Financial Performance: Adobe reported a record Q4 revenue of $5.05 billion, marking a 13% YoY growth and an annual revenue of $19.41 billion with a similar growth rate. GAAP-diluted earnings per share were $3.23, growing 28% year-over-year, and non-GAAP diluted earnings per share reached a record $4.27, growing 19% year-over-year. Adobe reported net new Digital Media ARR of $569 million, and Creative Cloud contributed $3 billion in revenue, growing 14% YoY. The document Cloud revenue was $721 million, growing 17%. The effective tax rate in Q4 was around 18% on both GAAP and non-GAAP basis. Business Progress: Adobe made significant strides in Creative and Document segments, with Creative Cloud remaining the platform of choice for content creators. The AI model, Firefly, drove significant customer engagement across Creative Cloud, with over 4.5 billion generations since launch.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We increase our 12-month target to $700 from $620, on P/E of about 33x our CY 25 EPS estimate, above peers but below historical averages. We tweak our FY 24 (Nov.) EPS estimate to $18.00 from $17.97 and keep FY 25 at $20.74. ADBE posts Nov-Q EPS of $4.27 vs. $3.60, beating the $4.14 consensus. Sales rose 13%, slightly above forecast, led by greater momentum across Creative Cloud (+12%), Document Cloud (+16%) and Experience Cloud (+10%). We are encouraged by a growing interest/pipeline for ADBE’s GenStudio while subscription demand across all segments remains strong. Despite FY 24 revenue guide slightly below guidance (EPS in-line), we think ADBE is being conservative and remain optimistic about its GenAI roadmap, with Firefly attracting interest across platforms (e.g., Photoshop and Illustrator)

Adobe (ADBE) reported fiscal Q4 non-GAAP earnings late Wednesday of $4.27 per diluted share, up from $3.60 a year earlier. Analysts polled by Capital IQ expected $4.14. Revenue for the quarter ended Dec. 1 was $5.05 billion, up from $4.53 billion a year earlier. Analysts surveyed by Capital IQ expected $5.02 billion. The company said it expects Q1 non-GAAP EPS between $4.35 and $4.40 and revenue between $5.10 billion and $5.15 billion. Analysts surveyed by Capital IQ expect $4.26 and $5.15 billion, respectively. Adobe expects fiscal 2024 non-GAAP EPS between $17.60 and $18.00 and revenue between $21.30 billion and $21.50 billion. Analysts surveyed by Capital IQ expect $17.98 and $21.73 billion, respectively.

Goldman Sachs Raises Adobe Systems Price Target to $640 From $625, Maintains Buy Rating。

Buy Now Pay Later is helping drive strong online spending so far this holiday season, Adobe Analytics says. BNPL spending on Saturday and Sunday rose 20% from last year, and is expected to rise nearly 19% to $782 million on Cyber Monday. “An uncertain demand environment pushed retailers to deliver big discounts this season, while also fortifying their e-commerce services with flexible payment methods,” says Vivek Pandya, a lead analyst at Adobe Digital Insights. “Consumers have taken note and spent at record rates during the big shopping days, despite dealing with rising costs in other parts of their lives.”